As we are approaching to end of the year and we look ahead of coming year the one question starts coming to your mind – What to expect in new year FY2019 for real estate?In FY2018 we have seen
What to expect for Housing Market in FY2019?
As we are approaching to end of the year and we look ahead of coming year the one question starts coming to your mind – What to expect in new year FY2019 for real estate?
In FY2018 we have seen strong and dominant trends, this effects of FY2018 will keep the real estate market still in boom or not? Looking back in FY 2018 predicting for real estate trends in FY2019 is tough. Will lesser inventory and higher mortgage rate make new year modest housing market? the answer is simply YES!
The housing market is beginning to slow down as winter months approaches. Looking back, it seems real estate market started with high prices, higher mortgage rates, lower inventory and bidding wars. What does that means for year 2019? no one can predict But ®'s forecast predicts there will be fewer home sales, with an anticipated 2% decline; slower price appreciation, like a 2.2% rise compared with the 8.5% increase we've seen so far this year; and slightly more of the sorely needed inventory.
1) Affording home will be a challenge -
With Federal Reserve continue to tighten Mortgage rate expect to rise, which eventually gives more pressure on home buyers. First time home buyers will have few challenges but if they are ready to compromise on their wish list then the new year will bring you to your new home.
2) New Construction on the rise –
That could be a good possibility, as we are seeing labor market is getting strong and construction business is reshaping to its core, there will be more Luxury Homes for sale in FY2019.
3) Will there be more homes on the market -
Looks like FY2019 will be yet again great year for home sellers but not blockbuster rate, could be 5%-7% more homes on the market than FY2018. But that brings more competition for sellers and if they are ready to hit the market, they will have to adjust their expectations, don’t think the house sold in the same neighborhood will bring the same money for your house or try not to listen to the stories on how quickly the next-door house got sold.
4) Will the renters become first time home buyers –
Will the renting still affordable in FY 2019 or the new tax code will bring changes? this one key factor will still be a key to millennials or renters alike. If with the new tax code brings lower tax bill and more money to the pocket, the renters will be tempted to buy new home. Millennials still paying off their student loans will get some room to play with this tax bills. But all this is still unknown and unpredictable.
As we are now few weeks away from the new year, start your own homework. If you are buying home get to know your finances, talk to your loan officer or bank and get moving.
If you are thinking of selling your home work on your home, check if any repairs need to be done, talk to your friends and family and decide on your next move.
Real estate market is getting crazy as our weather is, undecided and unpredictable at all the times, you have to prepare for every situation. So, go ahead enjoy the holidays and new year but at the same time keep working on your home!
Happy holidays and happy new year from our family to yours!